Tuesday, May 18, 2010

"Suntech Reports Preliminary Results, Stock up 2%" (STP)

From Zacks Analyst blog:

Suntech Power Holdings Co. Ltd. (STP - Analyst Report) announced preliminary financial results for first quarter 2010. The company anticipates total revenue for the quarter in the range of $580 to $590 million, well above the Zacks Consensus Estimate of $565 million.

Suntech’s better-than-expected revenue is driven by a vigorous demand in the quarter. With a robust demand in incumbent solar markets and a rapid growth in a host of emerging markets, the company expects this environment to continue throughout 2010.

Suntech revised its gross margin guidance for the quarter to the 19% to 20% range compared with the previous guidance of 18% to 20%. Additionally, the company expects to incur foreign exchange losses in the $24 to $25 million range and hedging gains of roughly $2 to $3 million in the first quarter.

With a view of mitigating foreign currency losses (due to the weaker euro) in future, the company has increased the hedge coverage of the net euro exposure to 50% for the second quarter and plans to take it further to above 60% in the second half of the year....MORE